FREQUENTLY ASKED QUESTIONS ABOUT OUR COLLATERAL ESCHEAT SERVICES
Below are frequently asked questions about our collateral escheat services.
Q. What are your collateral escheat services?
We support zero balancing support. We provide post escheat services. We support escheat override for retailers. We process CFPB guidance. We address fraud cards. We produce audit ready cards. We retain data and documents for regulatory required periods of time. We support the client in state inquiries and audits. And, clients have access to our expertise.
Q. What is zero balancing and what support do you provide?
When an item is escheated to a state, the client may write the prior balance of the item to zero. We refer to the process as zero balancing. For clients engaged in this process, our systems identify the instruments for zero processing and otherwise support the process.
Q. What is escheat override and what are your services in that regard?
Some escheat holders, including retailers, desire not to zero balance the cards when they are escheated. In that case, the card is left live and the cardholder is able to the card even after it is escheated. We refer to that practice as being escheat override. The practice is viewed as fostering good consumer experiences. Our systems support the practice. When the escheated card is used by the consumer, our processing systems will identify the card and we will seek reimbursement from the applicable state for the escheated amount.
Q. What is escheat exchange and what are your services in that regard?
For escheat holders engaged in zero balancing, the card will not be usable by the consumer after it is zero balanced. Consumers aggrieved by the situation may request assistance from the escheat holder. Escheat exchange is the process of paying the consumer with a check or a new card. Our systems support the practice and we will seek reimbursement from the applicable state for the escheated amount.
Q. What other post escheat service do you provide?
For clients electing not to use escheat override or escheat exchange, escheat will happen and the consumer will be left to seek reimbursement from the state. In that situation we offer services assisting the consumer in finding the pathway to the appropriate state.
Q. What is the CFPB guidance and what are your services in that regard?
The CFPB has issued guidance requiring that escheat override be applied with respect to the escheat of cards to certain state. Our processing systems address the guidance
Q. What are your services regarding fraud?
Issues arise over the escheat of fraudulently acquired cards including in identity theft of money laundering situations. Our services support decisions regarding the escheat of fraudulently obtained or sued cards.
Q. What are audit ready cards?
Given the variability of the laws, numerous decisions are made regarding the escheat of each item in a portfolio. Our systems automatically store data on the escheat decisions for each item in an audit trail for future use in responding to state inquiries and audits. The audit trail is updated for the card upon each card transaction. We refer to this process as creating audit ready cards.
Q. What data does your system require and process?
We typically use the transaction data supplied by a transaction processor. We are also capable of using information form account ledgers or Excel spreadsheets. We process both comprehensive data and summary sets.
